BEAUTY: REFA
We currently have categories of beauty rollers, skincare (creams and lotions), electronic cleansing brushes, beauty shower, mist devices and collagen drinks. We also just launched a hair dryer and hair iron (straightener) in Japan as we work with many top salons. Our aim is to strengthen in
the other categories as we have ambitions to become a total beauty solution brand; one that offers a product for any concern from the top of the scalp to tip of the toe.
Does the crackdown on daigou traders concern ReFa at all? We understand the risk of daigous and we believe the expansion of this business to be a result of the rapid development of social commerce platforms in China. While daigous are accelerating the erosion of brand equity and creating difficulties in price control, they also contribute to raising awareness of products. We hear that some of the top
daigous work with the top KOLs in order to quickly drive up demand for products. A crackdown on daigous could potentially slow down movements on China’s social media platforms and brands will have to figure out proper ways of marketing in China in the future.
Do you think the daigou trade has the potential to erode the equity and premium status of some brands in travel retail? We believe the difficulty which lies in maintaining brand image is not only limited to daigous, but in what is believed to be a successful marketing strategy in China. The majority of trending brands become popular through social media platforms and social commerce platforms such as RED and companies will invest millions to make brands successful in China. The danger we feel is that while
it is effective to raise awareness and create trends, the majority of consumers will not genuinely learn about the benefits of products, or how to use them. Working with daigous could potentially trigger price wars as well. In this sense, you could argue that the daigou trade will erode brand equity. But the problem
OCTOBER 2019
ReFa has a strong relationship with Lotte and is performing well at its Nha Trang Airport store.
brands are facing reaches beyond daigous, and more in how they build a genuinely premium status in China.
Does the current political situation and civil disruption in Hong Kong concern ReFa and/ or the industry in China and elsewhere in Asia? There is a concern. However, I believe we are always faced with possibilities of political events happening in any part of the world and at any time. In the global market, there are always external events outside of our control that will impact trading conditions. Therefore, we can only mitigate our risks by ensuring we don’t become dependent on one market alone.
What do you think about Alibaba’s Fliggy Buy platform? A sign of things to come. It is a move that provides us with a glimpse of the future of travel retail, but also highlights risks. If TR markets, like the e-commerce market, become borderless, brands will have to take extra precautions to control distribution channels and pricing strategies in the future. It is becoming more and more
easy for consumers to compare prices across different countries and stores. If distribution is not properly controlled, consumers may find products available with different merchants sold at a different price. There are also apps that list the
“A crackdown on daigous could potentially slow down movements on China’s social media platforms and brands will have to figure out proper ways of marketing in China in the future.”
Shu Setogawa, MTG Pacific
price of items in duty free stores around the world, which allows for quick comparisons. «
A brand ambassador mans a Shilla Duty Free counter at Singapore Changi Airport.
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